The FOMC sees the world coloured by rose-tinted spectacles. That's the view of Saxo Bank's Chief Economist, Steen Jakobsen, commenting on the end of QE in the States and the Fed's outlook for the US economy. Steen says the market has now moved the probability of a rate rise in America by June of 2015 from less than thirty to percent to 40 percent. That's not much, and he says the Fed is still very much in a 'wait and see' position.
Steen still believes we'll see new lows in equities in November when the Fed will be taking a more neutral bias. He also believes the US dollar will peak in a few weeks, with the euro and the South African rand coming under particular pressure.